FXStreet reports that strategists at DBS Bank raise their oil price forecasts for next few quarters.

“Considering the higher gas prices and potential oil demand boost of 0.5- 1.0mmbpd in the near-term from fuel switching requirements, we revise up our oil price forecasts for the next few quarters. Thus, our 2021 average Brent crude oil price forecast now stands at $67-72/bbl (vs. $65- 70/bbl earlier) and our 2022 Brent crude oil average price forecast is raised to $70-75/bbl (vs. $67-72/bbl earlier).”

“China oil imports will likely be weaker than expected in 2H21, owing to the Delta variant outbreak-related lockdowns and Evergrande contagion, but the oil market remains well supported by demand from other parts of the world, with global oil inventories well below five-year average levels and persistently falling month-on-month.”